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Why Adblock Plus Created an Independent Board to Review Ads

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Eyeo’s new independent board

Eyeo GmbH, a German (EWG) software developer, has announced its plans to form an independent board that will now be responsible for reviewing ads that the company previously reviewed itself. The independent board will decide which ads are acceptable and not disruptive in nature for its ad-blocking tool, Adblock Plus.

Eyeo has recently faced a lot of criticism for making decisions on ads from leading companies like Google (GOOG), Microsoft (MSFT), and Taboola. Now the company will give full freedom to this independent board for the review of ads and criteria, which Eyeo initially put in place for its own decisions toward acceptable or unacceptable advertisements.

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To complicate matters, PageFair, a company that opposes ad blockers, in partnership with Adobe, has reported that the number of Internet users actively using ad-blocking software has increased to 200 million in 2015. In comparison, the number was 50 million in 2013. Apple (AAPL) has released the latest iPhone and iPad OS (operating system), and its Safari browser allows ad blocking software.

Bad news for tech giants

Ad blocking is certainly not good news for tech giants like Google, Amazon.com (AMZN), and Microsoft, which earn the majority of their revenues from advertising, because these companies’ revenues take big hits from ad blocking.

For a diversified exposure to Google, you can consider investing in the PowerShares QQQ Trust Series 1 (QQQ), which invests 3.5% of its holdings in Google.

In the next part of this series, we’ll look at Twitter’s efforts to collaborate with e-commerce sites on its own platform.

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